Chapter

By-Laws and Rules and Regulations

Author(s):
International Monetary Fund
Published Date:
February 1996
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The By-Laws and the Rules and Regulations of the Fund are reproduced below as they stood at December 31, 1965.

By-Laws of the International Monetary Fund

(As at December 31, 1965)

Sec. 1. Places of Business

The principal office of the Fund shall be located within the metropolitan area of Washington, D. C., United States of America.

The Executive Directors may establish and maintain agencies or branch offices at any place in the territories of other members, whenever it is necessary to do so in order to facilitate the efficient conduct of the business of the Fund.

Adopted March 16, 1946

Sec. 2. Bank Represented

The Executive Directors are authorized to invite the International Bank for Reconstruction and Development to send a representative of the Bank to meetings of the Board of Governors and Executive Directors who may participate in such meetings, but shall have no vote.

The Executive Directors are authorized to accept invitations from the Bank to send a representative of the Fund to participate in meetings of the Board of Governors or Executive Directors of the Bank.

Adopted March 16, 1946

Sec. 3. Meetings of the Board of Governors

(a) The annual meeting of the Board of Governors shall be held at such time and place as the Board of Governors shall determine; provided, however, that, if the Executive Directors shall, because of special circumstances, deem it necessary to do so, the Executive Directors may change the time and place of such annual meeting.

(b) Special meetings of the Board of Governors may be called at any time by the Board of Governors or the Executive Directors and shall be called upon the request of five members of the Fund or of members of the Fund having in the aggregate one-fourth of the total voting power. Whenever any member of the Fund shall request the Executive Directors to call a special meeting of the Board of Governors, the Managing Director shall notify all members of the Fund of such request and of the reasons which shall have been given therefor.

(c) A quorum for any meeting of the Board of Governors shall be a majority of the Governors, exercising not less than two-thirds of the total voting power.

Adopted March 16, 1946, amended October 2, 1946

Sec. 4. Notice of Meetings of the Board of Governors

The Managing Director shall cause notice of the time and place of each meeting of the Board of Governors to be given to each member of the Fund by telegram or cable which shall be dispatched not less than 42 days prior to the date set for such meeting, except that in urgent cases such notice shall be sufficient if dispatched by telegram or cable not less than ten days prior to the date set for such meeting.

Adopted March 16, 1946, amended October 2, 1946

Sec. 5. Attendance of Executive Directors and Observers at Meetings of the Board of Governors

(a) The Executive Directors and their Alternates may attend all meetings of the Board of Governors and may participate in such meetings, but an Executive Director or his Alternate shall not be entitled to vote at any such meeting unless he shall be entitled to vote as a Governor or an Alternate or temporary Alternate of a Governor.

(b) The Chairman of the Board of Governors in consultation with the Executive Directors, may invite observers to attend any meeting of the Board of Governors.

Adopted March 16, 1946, amended October 2, 1946

Sec. 6. Agenda of Meetings of the Board of Governors

(a) Under the direction of the Executive Directors, the Managing Director shall prepare a brief agenda for each meeting of the Board of Governors and shall cause such agenda to be transmitted to each member of the Fund with the notice of such meeting.

(b) Additional subjects may be placed on the agenda for any meeting of the Board of Governors by any Governor provided that he shall give notice thereof to the Managing Director not less than seven days prior to the date set for such meeting. In special circumstances the Managing Director, by direction of the Executive Directors, may at any time place additional subjects on the agenda for any meeting of the Board of Governors. The Managing Director shall cause notice of the addition of any subjects to the agenda for any meeting of the Board of Governors to be given as promptly as possible to each member of the Fund.

(c) The Board of Governors may at any time authorize any subject to be placed on the agenda for any meeting of such Board even though the notice required by this section shall not have been given.

(d) Except as otherwise specifically directed by the Board of Governors, the Chairman of the Board of Governors jointly with the Managing Director, shall have charge of all arrangements for the holding of meetings of the Board of Governors.

Adopted March 16, 1946, amended October 2, 1946

Sec. 7. Election of Chairman and Vice-Chairmen

At each annual meeting the Board of Governors shall select a Governor to act as Chairman and at least two other Governors to act as Vice-Chairmen until the next annual meeting.

In the absence of the Chairman, the Vice-Chairman designated by the Chairman shall act in his place.

Adopted March 16, 1946

Sec. 8. Secretary

The Secretary of the Fund shall serve as Secretary of the Board of Governors.

Adopted March 16, 1946

Sec. 9. Minutes

The Board shall keep a summary record of its proceedings which shall be available to all members and which shall be filed with the Executive Directors for their guidance.

Adopted March 16, 1946

Sec. 10. Report of Executive Directors

The Executive Directors shall have prepared for presentation at the annual meeting of the Board of Governors an annual report in which shall be discussed the operations and policies of the Fund and which shall make recommendations to the Board of Governors on the problems confronting the Fund.

Adopted March 16, 1946

Sec. 11. Voting

Except as otherwise specifically provided in the Articles of Agreement, all decisions of the Board shall be made by a majority of the votes cast. At any meeting the Chairman may ascertain the sense of the meeting in lieu of a formal vote but he shall require a formal vote upon the request of any Governor. Whenever a formal vote is required the written text of the motion shall be distributed to the voting members.

Adopted March 16, 1946

Sec. 12. Proxies

No Governor or Alternate may vote at any meeting by proxy or by any other method than in person, but a member may make provision for the designation of a temporary Alternate to vote for the Governor at any Board session at which the regularly designated Alternate is unable to be present.

Adopted March 16, 1946

Sec. 13. Voting Without Meeting

Whenever, in the judgment of the Executive Directors, any action by the Fund must be taken by the Board of Governors which should not be postponed until the next regular meeting of the Board and does not warrant the calling of a special meeting of the Board, the Executive Directors shall present to each member by any rapid means of communication a motion embodying the proposed action with a request for a vote by its Governor. Votes shall be cast during such period as the Executive Directors may prescribe, provided that no Governor shall vote on any such motion until 7 days after dispatch of the motion, unless he is notified that the Executive Directors have waived this requirement. At the expiration of the period prescribed for voting, the Executive Directors shall record the results and the Managing Director shall notify all members. If the replies received do not include a majority of the Governors exercising two-thirds of the total voting power, which is usually required for a quorum of the Board of Governors, the motion shall be considered lost.

Adopted March 16, 1946

Sec. 14. Terms of Service

(a) Governors and Alternates shall receive their actual transport expenses to and from the place of meeting in attending meetings, and $75 for each night which attendance at such meetings requires them to spend away from their normal place of residence, this amount being reduced to $15 for each night when accommodation is included in the price of transportation.

(b) Pending the necessary action being taken by members to exempt from national taxation salaries and allowances paid out of the budget of the Fund, the Governors and the Executive Directors, and their Alternates, the Managing Director and the staff members shall be reimbursed by the Fund for the taxes which they are required to pay on such salaries and allowances.

In computing the amount of tax adjustment to be made with respect to any individual, it shall be presumed for the purposes of the computation that the income received from the Fund is his total income. All salary scales and expense allowances prescribed by this section are stated as net on the above basis.

(c) The salary of the Managing Director shall be $40,000 per annum. The Fund shall also pay any reasonable expenses incurred by the Managing Director in the interest of the Fund (including travel and transportation expenses for himself, and expenses for his family, and his personal effects in moving once to the seat of the Fund during or immediately before his term of office and in moving once from the seat during or immediately after his term of office). The contract of the Managing Director shall be for a term of five years and may be renewed for the same term or for a shorter term at the discretion of the Executive Directors, provided that no person shall be initially appointed to the post of Managing Director after he had reached his sixty-fifth birthday and that no Managing Director shall hold such post beyond his seventieth birthday.

(d) It shall be the duty of an Executive Director and his Alternate to devote all the time and attention to the business of the Fund that its interests require, and, between them, to be continuously available at the principal office of the Fund; however, in the event that both an Executive Director and his Alternate are unable to be available at the principal office of the Fund for reasons of health, absence while on business of the Fund, or similar reasons, the Executive Director may designate a temporary Alternate to act for him for periods of time which shall not in the aggregate exceed fifteen business days in the course of any financial year. A temporary Alternate shall receive no salary or expense allowance.

(e) The maximum salary and expense allowance including housing, entertainment and all other expenses [except those specified in subsection (f)] shall be $28,000 per year for Executive Directors and $22,000 per year for Alternates. It will be the duty of each Executive Director and each Alternate to state how much of these amounts he intends to draw whether as salary or as expense allowance, except that no Executive Director shall draw more than $25,000 and no Alternate shall draw more than $20,000 as salary.

(f) The Executive Directors and their Alternates are to be reimbursed, in addition, for all reasonable expenses incurred during absence from the seat of the Fund while on the designated service of the Fund. Executive Directors and their Alternates shall be reimbursed for authorized representation expenses actually incurred while they are absent from the seat of the Fund on a special mission at the request of the Fund. They shall also be reimbursed for travel and transportation expenses for themselves, their families, and their personal effects in moving once to the seat of the Fund during or immediately before their periods of service and in moving once from the seat during or immediately after their periods of service.

In addition, any Executive Director or Alternate shall in the third year of continuous full-time service in either capacity and in every second year of such service thereafter be entitled to reimbursement for the cost of transportation expenses for his family in traveling once to and from the country of which he or his wife is a national, provided that in cases where the wife is a national of another country the reimbursement for transportation expenses to and from her country does not exceed that to and from the country of which he is a national. For home leave travel more frequent than every third year, reimbursement shall be made on the basis of cabin- or economy-class accommodations.

(g) Where not specified, it is assumed that the Director and Alternate will be a full-time Director and Alternate. Where it is intended that he shall not devote his full time, it shall be so indicated. Where an Executive Director or Alternate indicates that he intends to devote only part of his time to the Fund, his remuneration shall be pro-rated on the basis of a representation by him of the proportion of his time he has devoted to the interests of the Fund. He may make such representation each month.

(h) Where an individual is serving both Fund and Bank, the aggregate of salary received from both shall not exceed the full annual single salary indicated above.

In all cases of salaries or expenses involving dual offices in the Fund or Bank, or both, the individual affected is entitled to take his choice as to which salary or expense he elects, but he shall not be entitled to both.

(i) An individual putting forward a claim for reimbursement for any expenses incurred by him shall include therewith a representation that he has not received and will not claim reimbursement in respect to those expenses from any other source.

(j) Secretarial, staff services, office space, and other services incidental to the performance of the duties of the Executive Directors and Alternates shall be provided by the Fund.

Adopted March 16, 1946; paragraph (a) amended March 18, 1946 and June 6, 1966; paragraph (c) amended July 27, 1951 and December 14, 1960, effective December 1, 1960; paragraph (d) amended September 17, 1947; paragraph (e) amended January 5, 1951, effective January 1, 1951; December 2, 1957, effective November 1, 1957; December 28, 1959, effective November 1, 1959; November 7, 1962, effective September 1, 1962; and August 8, 1966, effective November 1, 1965; paragraph (f) amended September 17, 1947, September 30, 1948, August 18, 1961, and September 10, 1964.

Sec. 15. Delegation of Authority

The Executive Directors are authorized by the Board of Governors to exercise all the powers of the Fund except those reserved to the Board by Article XII, Section 2 (b) and other provisions of the Articles of Agreement. The Executive Directors shall not take any action pursuant to powers delegated by the Board of Governors which is inconsistent with any action taken by the Board.

Adopted March 16, 1946

Sec. 16. Rules and Regulations

The Executive Directors are authorized by the Board of Governors to adopt such Rules and Regulations, including financial regulations, as may be necessary or appropriate to conduct the business of the Fund. Any Rules and Regulations so adopted, and any amendments thereof, shall be subject to review by the Board of Governors at their next annual meeting.

Adopted March 16, 1946

Sec. 17. Vacant Directorships

Whenever a new Director must be elected because of a vacancy requiring an election, the Managing Director shall notify the members who elected the former Director of the existence of the vacancy. He may convene a meeting of the Governors of such countries exclusively for the purpose of electing a new Director; or he may request nominations by mail or telegraph and conduct ballots by mail or telegraph. Successive ballots shall be cast until one candidate has a majority; and after each ballot, the candidate with the smallest number of votes shall be dropped from the next ballot.

When a new elective Director is named, the office of Alternate shall be deemed to be vacant and an Alternate shall be named by the newly-elected Director.

Adopted March 16, 1946

Sec. 18. Additional Directors

At least one month before the second and subsequent regular elections of Directors, the Managing Director shall notify all members of the two members whose currencies held by the Fund have been, on the average over the preceding two years, reduced below their quotas by the largest absolute amounts. He shall state whether either or both are entitled to appoint a Director in accordance with Article XII, Section 3 (c) of the Articles of Agreement.

When a member becomes entitled to appoint a Director in accordance with Article XII, Section 3 (b) (i) and 3 (c) of the Articles of Agreement, it shall not participate in the election of any Director.

Adopted March 16, 1946

Sec. 19. Representation of Members Not Entitled to Appoint a Director

(a) Each member not entitled to appoint a Director may, in accordance with the regulations provided in this section, send a representative to attend any meeting of the Executive Directors when a request made by, or a matter particularly affecting, that member is under consideration. A member, so electing, may waive its rights under this provision. The Executive Directors shall determine whether a matter under consideration particularly affects a member not entitled to appoint a Director, which determination shall be final.

(b) Whenever a member not entitled to appoint a Director desires to present its views at the meeting of the Executive Directors at which a request the member has made is to be considered, it shall so notify the Fund when it makes the request and shall designate a representative for this purpose who shall be available at the seat of the Fund. Failure to give such notice or to designate an available representative shall constitute a waiver of the member’s right to present its views at the meeting.

(c) Whenever the Executive Directors are to consider a matter which has been determined particularly to affect a member not entitled to appoint a Director, the member shall be promptly informed by rapid means of communication of the date set for its consideration. No final action shall be taken by the Executive Directors with respect to such matter, nor any question particularly affecting such member submitted to the Board of Governors, until the member has either waived its rights under paragraph (a) of this section or has been given an opportunity to present its views through an appropriately authorized representative at a meeting of the Executive Directors, of which the member has had reasonable notice.

Adopted March 16, 1946, amended September 17, 1947

Sec. 20. Budget and Audits

(a) The Executive Directors shall instruct the Managing Director to prepare an annual administrative budget to be presented to them for approval. The budget so approved shall be incorporated in the annual report to be presented to the Board of Governors at their annual meeting.

(b) An external audit of the financial records and transactions of the Fund shall be made annually and such audit shall relate to the period representing the fiscal year of the Fund. The Executive Directors shall submit the Fund’s audited balance sheet and audited statement of income and expense to the Board of Governors to be considered by them at their annual meeting.

The annual audit shall be made by an audit committee consisting of either three or five persons each of whom shall be nominated by a different member of the Fund and confirmed by the Executive Directors. At least one person serving on each audit committee shall be nominated by one of the six members of the Fund having the largest quotas. The Executive Directors shall determine, in the case of each audit, whether the audit committee shall consist of three or five persons and which members of the Fund shall be requested to nominate persons to serve on the committee. The service of the members of each audit committee shall terminate upon completion of the annual audit and submission of the report on audit.

Each audit committee shall elect one of its members as chairman, shall determine its own procedure, and shall otherwise be independent of the Management of the Fund in conducting the annual audit according to generally accepted auditing standards.

The annual audit shall be comprehensive with respect to examination of the financial records of the Fund; shall extend, insofar as practicable, to the ascertainment that financial transactions consummated during the period under review are supported by the necessary authority; and shall determine that there is adequate and faithful accounting for the assets of the Fund. It shall thereby establish an appropriate basis for conclusion concerning the financial position of the Fund at the close of the fiscal year and the results of its financial operations during that year. For this purpose, the audit committee shall have access to the accounting records of the Fund and other supporting evidence of its financial transactions and shall be furnished by the Management of the Fund with such information and representations as may be required in connection with the audit. The members of the audit committee shall respect the confidential nature of their service and the information made available for purposes of the audit.

All accounts shall be summarized in United States dollars; and for this purpose gold shall be valued in terms of United States dollars at the par value of the United States dollar, and all members’ currencies shall be converted at their par values or in accordance with a decision of the Fund pursuant to Article IV, Section 8 (b) (ii) of the Articles of Agreement.

The Executive Directors shall decide all questions of policy raised by requests of the audit committee for particular information or the inspection of particular records or documents. The refusal of any such requests for reasons of policy shall be explained in the comments of the Executive Directors forwarded to the Board of Governors with the report on audit.

Any question the audit committee may have concerning interpretation of the Articles of Agreement, the By-Laws, or the Rules and Regulations shall be discussed with the Managing Director, or officials designated by him, and if the reply is not completely satisfactory to the audit committee, shall be referred to the Executive Directors through the Managing Director.

The audit committee shall submit its report on audit to the Board of Governors for consideration by them at their annual meeting. Such submission shall be made through the Managing Director and the Executive Directors who shall forward with the report on audit their comments thereon. The audit committee shall afford the Managing Director an opportunity for explanation to them before deciding that any matter seems to require criticism in the report on audit.

The audit committee may formally furnish the Managing Director and Executive Directors their views and suggestions concerning the system of accounting, internal financial control, and documentary or other procedure which may technically strengthen or improve the administration of the Fund’s financial affairs. Such matters need not be dealt with in the report on audit unless the audit committee believes they are of such moment as to warrant inclusion.

The Managing Director shall determine what expenses are necessary and reasonable in connection with each annual audit and the Fund shall bear such expenses.

Adopted March 16, 1946, amended September 17, 1947

Sec. 21. Applications for Membership

Subject to any special provisions that may be made for countries listed in Schedule A of the Articles of Agreement, any country may apply for membership in the Fund by filing with the Fund an application setting forth all relevant facts.

When submitting an application to the Board of Governors, the Executive Directors after consultation with the applicant country shall recommend to the Board the amount of the quota, the form of payment, the parity of the currency, conditions regarding exchange restrictions, and such other conditions as, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe.

Adopted March 16, 1946

Sec. 22. Compulsory Withdrawal

Before any member is required to withdraw from membership in the Fund, the matter shall be considered by the Executive Directors who shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing. The Executive Directors shall recommend to the Board of Governors the action they deem appropriate. The member shall be informed of the recommendation and the date on which its case will be considered by the Board and shall be given a reasonable time within which to present its case to the Board both orally and in writing. Any member so electing may waive this provision.

Adopted March 16, 1946

Sec. 23. Settlement of Disagreements

The President of the International Court of Justice is prescribed as the authority to appoint an umpire whenever there arises a disagreement of the type referred to in Article XVIII (c) of the Articles of Agreement.

Adopted March 16, 1946

Sec. 24. Amendment of By-Laws

These By-Laws may be amended by the Board of Governors at any meeting thereof or by vote without a meeting as provided in Section 13.

Adopted October 2, 1946

Rules and Regulations of the International Monetary Fund

(As at December 31, 1965)

A—Scope of Rules and Regulations

A-1. These Rules and Regulations supplement the Fund Agreement and the By-Laws adopted by the Board of Governors. They are not intended to replace any provision of either the Agreement or the By-Laws. The Rules and Regulations attempt to provide such operating rules, procedures, regulations, and interpretation as are necessary and desirable to carry out the purposes and powers contained in the Agreement, as supplemented by the By-Laws. If any provision in the Rules and Regulations is found to be in conflict with any provision in the Agreement or in the By-Laws, the Agreement and By-Laws shall prevail and an appropriate amendment should be made to these Rules and Regulations.

Adopted September 25, 1946

A-2. Additions to, and changes of, the Rules and Regulations will be made as experience brings to light new problems or suggests modifications in procedures already adopted.

Adopted September 25, 1946

B—Terms, Definitions, and Symbols Employed in this Document

B-1. Executive Director, except where otherwise specified, shall include the Alternate or the temporary Alternate, as the case may be.

Adopted September 25, 1946, amended August 14, 1947, effective September 17, 1947

B-2. Executive Board refers to the Executive Directors presided over by the Chairman.

Adopted September 25, 1946

B-3. Chairman, except where otherwise specified, shall refer to the Chairman or Acting Chairman of the Executive Board.

Adopted September 25, 1946

B-4. Agenda ordinarily refers to both the list of items to be considered at a meeting and the supplementary documents pertinent thereto.

Adopted September 25, 1946

B-5. Fund Agreement refers to the Articles of Agreement of the International Monetary Fund and, where the context is clear, Agreement shall also refer to the Articles of Agreement.

Adopted September 25, 1946

B-6. FA refers to the Fund Agreement.

BL refers to the By-Laws of the International Monetary Fund as adopted by the Board of Governors.

RR refers to these Rules and Regulations.

Adopted September 25, 1946

B-7. Executive Session refers to a Meeting of the Executive Directors in which no person is present except the Executive Directors, Managing Director, and, with the approval of the Board granted separately for each Executive Session, the Secretary of the Board.

Adopted September 25, 1946

B-8. Business day 1 refers to the normal working hours of the Fund, 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, on Monday through Friday of each week with the following exceptions (which will include the preceding Friday whenever one of the dates below falls on a Saturday and the following Monday whenever one falls on a Sunday):

January 1First Monday in September
February 22November 11
May 30Fourth Thursday in November
July 4December 25

Adopted May 28, 1947, amended March 8, 1948 and October 27, 1961

C—Meetings of the Executive Board

Meetings

C-1. Meetings of the Executive Directors shall be called by the Chairman as the business of the Fund may require. Except in special circumstances the Chairman shall notify all Executive Directors of meetings at least two business days in advance.

Adopted September 25, 1946, amended May 28, 1947

C-2. The Chairman shall call a meeting at the request of any Executive Director.

Adopted September 25, 1946

C-3. Meetings of the Executive Board shall be open to attendance by the Secretary and such members of the staff as the Chairman indicates. At the request of the Chairman or any Executive Director meetings may be held in Executive Session, or the Executive Board may determine which particular members of the staff may attend any session.

Adopted September 25, 1946, amended January 15, 1948

C-4. The Executive Directors shall meet at the principal office of the Fund unless it is decided that a particular meeting shall be held elsewhere.

Adopted September 25, 1946

C-5. In the absence of the Managing Director, the Deputy Managing Director shall act as Chairman and shall have a deciding vote in case of an equal division. In the absence of both the Managing Director and the Deputy Managing Director, the Executive Director selected by the Executive Board shall act as Chairman. An Executive Director shall retain his right to vote when serving as Acting Chairman.

Adopted September 25, 1946, amended November 12, 1948

Agenda

C-6. The agenda for each meeting shall be prepared by the Chairman. The agenda shall include any item requested by an Executive Director.

Adopted September 25, 1946

C-7. Except in special circumstances the Chairman shall notify Executive Directors of new items on the agenda at least two full business days before their consideration in meetings. Additional advance notice shall be given at the discretion of the Chairman before the consideration of new items of especial importance which may require consultation with members or the return to the seat of the Fund of Executive Directors who are absent.

Adopted September 25, 1946, amended May 28, 1947

C-8. Matters not on the agenda for a meeting may be considered at that meeting only by unanimous consent of the Executive Directors present.

Adopted September 25, 1946

C-9. Any item of the agenda for a meeting, consideration of which has not been completed at that meeting, shall, unless the Executive Directors decide otherwise, be automatically included in the agenda of the next meeting.

Adopted September 25, 1946

Voting

C-10. The Chairman will ordinarily ascertain the sense of the meeting in lieu of a formal vote. Any Executive Director may require a formal vote to be taken with votes cast as prescribed in Article XII, Section 3 (i).

Adopted September 25, 1946

C-11. There shall be no formal voting in committees and subcommittees. The Chairman of the committee or subcommittee shall determine the sense of the meeting (including alternative points of view) which shall be reported.

Adopted September 25, 1946

C-12. No Executive Director may vote at any meeting by proxy or by any other method than in person.

Adopted September 25, 1946

Language

C-13. The working language of the Fund will be English. The discussion, documents, and reports of meetings will ordinarily be in English. Speeches or papers presented in other languages shall be translated into English.

Adopted September 25, 1946

Minutes

C-14. Under the direction of the Managing Director, the Secretary shall be responsible for the preparation of a summary record of the proceedings of the Executive Board.

Adopted September 25, 1946

C-15. Verbatim records will be taken only if the Chairman, the Executive Board or an Executive Director so requests. In such case, the Secretariat shall be given advance notice of the desire for verbatim recording.

Adopted September 25, 1946

C-16. Draft minutes will be circulated to all Executive Directors as quickly as possible after meetings. They will normally be submitted for approval at the next meeting of the Executive Board following the day they are circulated, and in any case will be submitted for approval not later than the third succeeding meeting.

Adopted September 25, 1946, amended May 28, 1947 and August 14, 1947

D—Application for Membership and Quotas

D-1. When a country applies for membership in the Fund, and the application is placed before the Executive Board, the Chairman shall announce a reasonable time to be allowed for discussion and preliminary investigation by the Executive Board before a decision is reached to proceed with the formal investigation. If this decision is in the affirmative the Fund may proceed to obtain all relevant information and discuss with the applicant any matters relating to its application. Any Executive Director may request such information to be added to the list requested of the applicant as in his opinion is relevant to the decision to be made. The Executive Board shall then decide whether to submit an application for membership with its views to the Board of Governors for a telegraphic vote or hold the application until the next meeting of the Board of Governors.

FA II-2; BL-21. Adopted September 25, 1946

D-2. When a member requests an adjustment of its quota, the Executive Board, after consulting the member, shall submit a written report on the request to the Board of Governors at its next meeting. If the Board of Governors approves an increase in the quota of a member, and on the date the member consents to the increase its monetary reserves are less than its new quota, the Executive Board may reduce the proportion of the increase to be paid in gold. The member shall, if it desires such a reduction, transmit to the Fund by rapid means of communication within ten days after its consent, the data necessary to determine its monetary reserves as at the date of the consent. The decision of the Executive Board shall be made within ten days after receipt of such data.

FA III-2 and 4. Adopted September 25, 1946, amended May 28, 1947

D-3. At least one year prior to the time when a review of quotas must be undertaken by the Fund, the Executive Board shall appoint a committee to study the problem and to prepare a written report.

FA III-2. Adopted September 25, 1946

E—Subscriptions

E-1. Gold depositories of the Fund shall be established in the United States, United Kingdom, France, and India. The gold of the Fund shall be held with the depositories designated by the members in whose territories they are located at places agreed with the Fund. A member may pay its gold subscription to the Fund at one or more of the specified gold depositories within the terms of Article XIII, Section 2.

FA XIII-2. Adopted September 25, 1946, amended November 29, 1956

E-2. A member shall pay its currency subscription to the Fund at the designated depository. Each member is authorized to substitute in accordance with Article III, Section 5, non-negotiable, non-interest bearing notes payable to the Fund on demand for that part of the currency holdings of the Fund which exceed 1 per cent of the member’s quota, and the depository shall hold such notes for the account of the Fund. Such notes shall not be accepted until the Fund is satisfied that they are in proper form and that their issue has been authorized. The balances held in the administrative accounts of the Fund shall not be considered as part of the currency holdings of the Fund for the application of this Rule.

FA III-5. Adopted September 25, 1946, amended February 20, 1950

E-3. The Executive Board may agree to alter the 1 per cent requirement in the case of any member should circumstances in the opinion of the Executive Board warrant a different percentage.

Adopted September 25, 1946, amended February 20, 1950

E-4. The member is allowed 24 hours in which to deposit the currency necessary to maintain the amount required under E-2 and E-3.

Adopted September 25, 1946

E-5. For purposes of Article III, Section 3, initial gold payments in excess of the minimum shall be accepted on the same basis as the minimum payment.

Adopted September 25, 1946

F—Par Values

F-1. The Fund shall arrange through the fiscal agencies of members that frequent and regular information as to the market rates of members’ currencies bought and sold in their territories is made available to the Fund.

Adopted September 25, 1946

F-2. Members shall notify the Fund whether for the settlement of international transactions they, in fact, freely buy and sell gold within the prescribed limits of price and shall notify the Fund of any changes in such policy.

FA IV-4 (b). Adopted September 25, 1946

F-3. A member desiring to change the par value of its currency shall give the Fund as much notice as the circumstances allow, and shall submit a full and reasoned statement why, in its opinion, such a change is necessary to correct a fundamental disequilibrium.

FA IV-5. Adopted September 25, 1946

F-4. For transactions in gold by a member the margin above and below par value shall be, at the option of the member, either:

  • 1. One quarter of one per cent plus the following charges:

  • (a) The actual or computed cost of converting the gold transferred into good delivery bars at the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

  • (b) The actual or computed cost of transporting the gold transferred to the normal center for dealing in gold of either the buying member or the member whose currency is exchanged for the gold;

  • (c) Any charges made by the custodian of the gold transferred for effecting the transfer; or

  • 2. One per cent, which one per cent shall be taken to include all of the charges set forth in 1 above.

Adopted June 10, 1947, amended October 15, 1954 and extended November 5, 1954

G—Fund Transactions

General

G-1. Each member shall designate a fiscal agency for its transactions with the Fund, in accordance with Article V, Section 1, before its subscription becomes due, and may change the agency after notifying the Fund.

FA V-1. Adopted September 25, 1946

Foreign Exchange

G-2. Each request from a member to purchase currency from the Fund shall be made by the fiscal agency designated in accordance with Article V, Section 1, such request to be authenticated in the manner agreed upon by the Fund and the agency. In its operations on behalf of the Fund a depository will act only on instructions authenticated in such manner as may be agreed upon by the Fund and the depository.

Adopted September 25, 1946, amended February 20, 1947

G-3. When a duly authenticated request for the purchase of foreign exchange in accordance with Article V, Section 3, is received, the Fund shall, on the third business day following the day of receipt of the request, instruct the appropriate depository to make the transfer, except in cases which the Executive Board may indicate. The first business day after receipt of the request shall be regarded as the first of the three days.

Adopted September 25, 1946, amended February 7, 1947

G-4. When a member expects to purchase from the Fund, in a single transaction or a series of transactions, an unusually large sum of any other member’s currency (unusually large relative to the quota of that other member), the member shall give the Fund as much notice of the proposed transaction or transactions as can reasonably be effected.

Adopted September 25, 1946

G-5. When the request of a member, if consummated, would increase to more than 5 per cent of its quota the aggregate purchases by the member pursuant to Article V, Section 3, during the thirty-day period preceding the date of action specified in G-3, the Managing Director shall notify each Executive Director (or his Alternate if the Executive Director is not available) on the first business day after receipt of the request. If neither the Executive Director nor the Alternate is in Washington or its environs, the notification will be assumed to have been duly delivered if appropriate notice is delivered to his office.

At the request of any Executive Director or on the initiative of the Managing Director, a special meeting shall be called by the Managing Director to discuss the request as soon as feasible, but not later than the morning of the second business day.

Adopted February 7, 1947

Gold

G-6. Gold due to the Fund may be delivered at any gold depository of the Fund. Whenever the Fund accepts gold situated elsewhere than at a gold depository of the Fund, the member delivering such gold may be required to assume the actual or estimated costs, as the case may be, of moving the gold to the Fund’s nearest gold depository. Where the member is required to reimburse the Fund for such actual or estimated costs, the Fund shall advise the member in what form reimbursement shall be made.

Adopted July 30, 1948

G-7. When any member sells gold to the Fund pursuant to Article V, Section 6 (a), the member may be required to assume the estimated costs that would be incurred by the Fund if it used the gold so acquired to purchase the currency it has sold. The Fund shall advise the member in what form such payment shall be made.

Adopted July 30, 1948

H—Exchange Controls, Currency Practices, and Agreements

H-1. The Fund shall keep all exchange controls under review and shall consult with members with a view to the progressive removal of exchange restrictions in accordance with the Fund Agreement.

FA XIV-2. Adopted September 25, 1946

H-2. If a member complains to the Executive Board that another member is not complying with its obligations concerning exchange controls, discriminatory currency arrangements, or multiple currency practices, the complaint shall give all facts pertinent to an examination.

FA VIII-2 and 3. Adopted September 25, 1946

H-3. Upon receipt of a complaint from a member, the Executive Board shall make arrangements promptly for consultation with the members directly involved.

Adopted September 25, 1946

H-4. All requests by a member under Article VIII, Sections 2 and 3, that the Fund approve the imposition of restrictions on the making of payments and transfers for current international transactions, or the use of discriminatory currency arrangements or multiple currency practices, shall be submitted to the Executive Board in writing, with a statement of the reasons for making the request.

FA VIII-2 and 3. Adopted September 25, 1946

H-5. The Executive Board shall decide each request for approval expeditiously.

Adopted September 25, 1946

I—Repurchases and Charges

I-1. The first time that a member has to make a gold payment to the Fund it shall deliver gold of designated weight and fineness at least sufficient in value to meet the payment. Any surplus balance of gold shall be held by the Fund under earmark at the disposal of the member and may be used to meet other payments incurred in the future.

Adopted September 25, 1946

I-2. The service charge payable by a member buying the currency of another member in exchange for its own currency shall be paid at the time the transaction is consummated. The service charge payable for such transactions taking place from December 1, 1951 through April 30, 1966, shall be ½ of 1 per cent.

FA V-8 (a). Adopted September 25, 1946, amended November 19, 1951, November 14, 1952, June 26, 1953, October 14, 1953, December 23, 1953, December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, December 9, 1957, December 12, 1958, March 20, 1959, April 20, 1959, April 19, 1960, April 17, 1961, April 25, 1962, April 24, 1963, April 13, 1964, and April 28, 1965

I-3. Rule I-3, adopted September 25, 1946, was eliminated on July 30, 1948, and the substance of the Rule was incorporated into Rule G-6 on that date.

  • I-4. (a) As soon as possible after July 31, October 31, January 31 and April 30, the Fund shall notify each member by cable of the charges it owes to the Fund pursuant to Article V, Section 8 (c) or (d), for the three calendar months ending on each such date. These charges shall be payable within thirty days after the sending of such notice.

    Adopted September 25, 1946, amended July 30, 1948 and February 24, 1954

    • (b) Such charges payable by each member shall be computed on the basis of the “average of the holdings” which, as used in this section, means the average daily balances of its currency held by the Fund in excess of its quota calculated as follows:

      • (i) At the end of each calendar month there shall be averaged for each member the daily amounts by which the Fund’s holdings of its currency on the Fund’s books at the close, of each day during that month have exceeded its quota on each such day;

      • (ii) The Fund’s holdings of each member’s currency shall consist of all of its currency except amounts, not in excess of 1/100 of 1% of the member’s quota, in a special account to meet administrative expenses.

        Adopted July 30, 1948

  • (c) The period of time during which the Fund’s holdings of a member’s currency have been at a particular level shall be the continuous period of time during which the average of the holdings has not fallen below that level, and, in determining periods of time for the application of the charges, changes in the average of the holdings shall affect the calculation of time periods in the following way:

    • (i) Each increase in the average of the holdings shall create a new segment of the holdings which will be equal to the amount of the increase and the period of time during which each segment is held shall be measured from the beginning of the month in which the increase in the average of the holdings occurs.

    • (ii) Each decrease in the average of the holdings shall terminate the period of time during which the holdings have been in excess of the new average and the period of time shall terminate at the end of the month preceding that in which the decrease in the average of the holdings occurs.

      Adopted July 30, 1948

[Rule 1-4 (d) and (e) have been omitted because the charges provided thereunder are no longer applicable to any segment of the Fund’s holdings.]

  • (f) (1) With respect to each segment of the holdings of a member’s currency to the extent that it represents the acquisition of that currency by the Fund from January 1, 1954 through April 30, 1963:

    • (i) The charge to be levied on each segment to the extent that it is within the first bracket of 50 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next fifteen months, and an additional ½ per cent per annum for each subsequent six months.

    • (ii) The charge to be levied on each segment to the extent that it is within the second bracket of more than 50 per cent and not more than 75 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next nine months, and an additional ½ per cent per annum for each subsequent six months.

    • (iii) The charge to be levied on each segment to the extent that it is within the third bracket of more than 75 per cent and not more than 100 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next three months, and an additional ½ per cent per annum for each subsequent six months.

  • Adopted as 1-4 (f) December 23, 1953, amended December 15, 1954, December 27, 1955, May 23, 1956, December 21, 1956, December 9, 1957, December 12, 1958, March 20, 1959, April 20, 1959, April 19, 1960, April 17, 1961, April 25, 1962, and April 24, 1963

  • (2) With respect to each segment of the holdings of a member’s currency to the extent that it represents the acquisition of that currency by the Fund from May 1, 1963 through April 30, 1966:

    • (i) The charge to be levied on each segment to the extent that it is within the first bracket of 50 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next fifteen months, and an additional ½ per cent per annum for each subsequent six months.

    • (ii) The charge to be levied on each segment to the extent that it is within the second bracket of more than 50 per cent and not more than 100 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next nine months, and an additional ½ per cent per annum for each subsequent six months.

    • (iii) The charge to be levied on each segment to the extent that it is within the third bracket of more than 100 per cent in excess of the quota shall be nil for the first three months, 2 per cent per annum for the next three months, and an additional ½ per cent per annum for each subsequent six months.

      Adopted April 24, 1963, amended April 13, 1964 and April 28, 1965

  • (g) The Fund and the member shall consider means by which the Fund’s holdings of the currency can be reduced whenever the Fund’s holdings of a member’s currency are such that the charge under (f) above applicable to any segment for any period has reached the rate of 4 per cent per annum. Thereafter, the charges shall rise in accordance with (f) above, provided that the rate shall not increase beyond 5 per cent per annum when agreement is reached under this Rule for repurchase within three to five years after a drawing in accordance with Executive Board Decision No. 102-(52/11). In the case of agreements on means to reduce the Fund’s holdings beyond five years, the Fund may adopt higher maximum rates. In the absence of agreement on means to reduce the Fund’s holdings, the Fund may impose such charges as it deems appropriate after the rate of 5 per cent is reached. When an agreement for repurchase within three to five years after a drawing is not reached or observed, the charges to be imposed shall rise in accordance with (f) above, provided that when the charges payable on any segment have reached 6 per cent the Fund will review the charges to be imposed thereafter. In the case of non-observance, if 5 per cent is payable on any segment at the date of non-observance, it shall continue to be payable only for that part of a period of six months for which it has not yet been payable; and when the repurchases to which the non-observance relates are made or a new agreement for repurchase not later than five years after the drawing is made all charges in excess of 5 per cent shall be reduced to 5 per cent.

    Adopted as I-4 (f) November 19, 1951, amended December 23, 1953, April 27, 1959, February 25, 1963, and April 24, 1963

FA V-8 (c) and (d).

  • I-5. (a) If, in accordance with Article V, Section 8 (f), a member wishes to pay in its own currency part of any charge due to the Fund pursuant to I-4, the proportion to be paid in such currency shall be calculated on the basis of its monetary reserves at the end of the quarter of the financial year of the Fund to which such charges apply.

    Adopted September 25, 1946, amended May 28, 1947 and July 30, 1948

  • (b) If, in accordance with Article V, Section 8 (f), a member wishes to pay in its own currency part of any charge due to the Fund pursuant to I-2 or I-8, the proportion to be paid in such currency shall be calculated on the basis of its monetary reserves on the day before the day on which the charge is due; provided, however, that if the member would encounter undue difficulties in providing for that day the data required by the Fund in the monetary reserve report forms sent to members, the proportion to be paid in the member’s currency shall be calculated on the basis of its monetary reserves at the end of the quarter of the financial year of the Fund in which the charge becomes due. The member, when making a provisional payment in accordance with (c) below, shall advise the Fund whether the member will provide monetary reserve data for the day before the day on which the charge becomes due or for the end of the quarter in which the charge becomes due.

    Adopted July 30, 1948, amended March 24, 1950

  • (c) Whenever a charge is due under I-2, I-4, or I-8, and the member wishes to pay part thereof in its own currency, the member shall make a provisional payment in gold and currency on the basis of its own estimate of its monetary reserves for the appropriate day or end of quarter of the financial year of the Fund as specified in (a) or (b) above. The member shall provide the Fund with the data, for such appropriate day or end of quarter, required by the Fund in the monetary reserve report forms sent to members, and such data shall be provided to the Fund not later than six months from the aforesaid appropriate day or end of quarter. On the basis of such data, the Fund shall make a final determination of the proportions of the charge to be paid in gold and in currency, and final adjustment of the provisional payment shall be made on the date specified by the Fund. If the member fails to provide its monetary reserve data within the period prescribed herein, the whole of the charge shall be finally payable in gold.

    Adopted July 30, 1948

FA V-8(f)

  • I-6. (a) Within six months after the end of each financial year of the Fund, each member shall furnish the data necessary for the calculation of its monetary reserves and its repurchase obligation, if any. Such data shall be supplied to the Fund in the monetary reserve report forms sent to members by the Fund.

    • (b) Each member’s monetary reserves and repurchase obligation, if any, shall be computed on the basis of the aforesaid data.

    • (c) When a repurchase obligation has thus been computed for a member, the Managing Director, after consultation with the Executive Director appointed or elected by the member, shall notify the member by letter containing all the necessary details of the computation, including the distribution of the amount payable among the types of reserves.

    • (d) If the member is in agreement with the aforesaid computation, the member shall so advise the Fund within thirty days from the day on which the member receives notice thereof. The Managing Director shall then send to the member a formal request for payment, and shall at the same time notify the Board of such request. The member shall discharge the repurchase obligation within thirty days from the day on which the member receives the formal request for payment.

    • (e) If the member disagrees with the computation notified to it under (c) above, it shall so advise the Fund within thirty days from the day on which the member receives notice thereof, and shall at the same time or within the said thirty days inform the Fund of its reasoned objections. If agreement with the member is not reached within a period regarded by the Managing Director as reasonable in the circumstances of the case, the Managing Director, after consultation with the Executive Director appointed or elected by the member, shall refer the matter to the Executive Board.

    • (f) After agreement with the member if reached under (e) above, or after a decision by the Executive Board determining the member’s repurchase obligation, the Managing Director shall send to the member a formal request for payment, and shall at the same time notify the Board of such request. The member shall discharge the repurchase obligation within thirty days from the day on which the member receives the formal request for payment or within such other period as may be decided by the Executive Board.

    • (g) The Managing Director shall report to the Executive Board any case in which it appears the above procedure has not been followed.

FA V-7 and Schedule B. Adopted September 25, 1946, amended July 28, 1950

I-7. For the purposes of Article V, Section 7, the term “financial year” shall be defined as beginning on May 1 and ending on the succeeding April 30; provided, however, that the first financial year shall begin on March 1, 1947 and end on April 30, 1948.

For purposes of the Fund’s accounts and reports, its fiscal year shall begin on May 1 and end on the succeeding April 30; provided, however, that the fiscal year 1946/47 shall begin on July 1, 1946 and end on June 30, 1947, and the fiscal year 1947/48 shall begin on July 1, 1947 and end on April 30, 1948.

Adopted February 7, 1947, amended May 28, 1947, effective September 17, 1947

I-8. When any member sells gold to the Fund pursuant to Article V, Section 6 (a), or buys gold from the Fund, the Fund may levy a handling charge which shall be paid in accordance with Article V, Section 8 (f).

Adopted February 7, 1947, amended July 30, 1948

J—Accounts and Reports

J-1. The accounts of the Fund shall be kept in terms of the currencies held by the Fund and United States dollars on the basis of the established parities.

FA IV-1; BL-20. Adopted September 25, 1946

J-2. The accounts of the Fund shall be kept in a manner that will show clearly the nature of each transaction, the position of the Fund, and results of its operations.

Adopted September 25, 1946

J-3. A summary statement of the Fund’s transactions and its holdings of gold and currencies of members shall be issued at intervals of three months or less, and a monthly statement of balances shall be sent to all members.

FA XII-7. Adopted September 25, 1946

J-4. The Managing Director shall prepare an annual administrative budget for presentation to the Executive Board for approval not later than April 1 of each year.

BL-20. Adopted September 25, 1946, amended February 20, 1948

J-5. Not later than June 30 of each year, the Managing Director shall present to the Executive Board a summary of the matters which in his opinion should be included in the annual report to the Board of Governors. At least one month before the annual meeting of the Board of Governors, the Managing Director shall submit to the Executive Board for its consideration, a draft of the annual report.

BL-10. Adopted September 25, 1946

J-6. At least one month before the annual meeting of the Board of Governors, the audited accounts of the Fund shall be submitted to the Executive Board for its consideration.

BL-20. Adopted September 25, 1946

K—Limitation and Ineligibility

K-1. The Managing Director shall report to the Executive Board any case in which it appears to him that a member is not fulfilling its obligations under the Fund Agreement.

Adopted September 25, 1946

K-2. Whenever the Executive Board would be authorized to declare a member ineligible to use the resources of the Fund it may refrain from making the declaration and indicate the circumstances under which, and/or the extent to which, the member may make use of the resources.

FA V-5, VI-1, and XV-2 (a). Adopted September 25, 1946

K-3. When a member has changed the par value of its currency despite the objection of the Fund, in cases where the Fund is entitled to object, the Executive Board may determine the circumstances under which, and the extent to which, a member may use the resources of the Fund.

Adopted September 25, 1946

K-4. Before any member is declared, pursuant to Article XV, Section 2 (a), ineligible to use the resources of the Fund, the matter shall be considered by the Executive Board, who shall inform the member in reasonable time of the complaint against it and allow the member an adequate opportunity for stating its case both orally and in writing.

FA XV-2 (a); BL-22. Adopted September 25, 1946

K-5. When any member that is ineligible to use the resources of the Fund, or whose use of the resources has been limited, according to K-2 or K-3 above, requests the Executive Board to permit the resumption of exchange transactions with or without special limitations and the Executive Board decides not to permit such resumption, a written report shall be made to the member stating what further action is required before such resumption will be permitted.

Adopted September 25, 1946, corrected October 18, 1950

L—Capital Transfers

L-1. If there is taking place a large or sustained outflow of capital from a member country:

  • (a) that member or any other member may notify the Fund, presenting such information as it deems necessary; and may request the Fund’s views with respect to such capital movement; and

  • (b) the Fund may present to the member or members concerned a report setting forth its views, and may request the member or members to report on the situation within a suitable time.

Adopted September 25, 1946

L-2. Whenever the Fund has requested a member to exercise controls to prevent use of the resources of the Fund to meet a large or sustained outflow of capital, the Fund shall request the member to notify it promptly and in detail of the measures taken.

FA VI-1 (a). Adopted September 25, 1946

L-3. Each member shall inform the Fund in detail of the measures it is taking to regulate international capital movements and of changes made in such measures.

Adopted September 25, 1946

L-4. If the Fund is of the opinion that the controls exercised by a member to regulate international capital movements are restrictive of payments for current transactions, or unduly delay transfers of funds in settlement of commitments, the Fund shall, subject to the provisions of Article VII, Section 3 (b) and Article XIV, Section 2, consult with the member on the manner in which the controls are exercised. If, after consultation, the Fund is not satisfied that the controls are exercised in a manner consistent with the Fund Agreement, it shall so inform the member in a written report and request it to modify the controls.

FA VI-3. Adopted September 25, 1946

M—Relations with Non-Members

M-1. The Fund may request the cooperation of any member with a view to the application of appropriate measures to prevent transactions with non-members or with persons in their territories, contrary to the provisions of the Agreement or the purposes of the Fund.

FA XI-1 (iii). Adopted September 25, 1946

M-2. When the Fund finds that a member or any of its fiscal agencies referred to in Article V, Section 1, engages in any transaction with or cooperates in practices with a non-member or with persons in a non-member’s territory, contrary to the provisions of the Agreement or the purposes of the Fund, it shall present to the member a report setting forth its views and may request the cessation or modification of the transactions or practices.

FA XI-1 (i) and (ii). Adopted September 25, 1946

M-3. A member shall inform the Fund promptly and in detail of any restrictions which it imposes on exchange transactions with non-members or with persons in their territories.

FA VIII-5 (a) (xi). Adopted September 25, 1946

M-4. Any member may notify the Fund of restrictions imposed by a member on exchange transactions with non-members or with persons in their territories which are deemed to prejudice the interests of members and to be contrary to the purposes of the Fund.

FA XI-2. Adopted September 25, 1946

M-5. When the Fund finds that the restrictions imposed by a member on exchange transactions with non-members or with persons in their territories are prejudicial to the interests of members and contrary to the purposes of the Fund, it shall present to the member a report setting forth its views and may request the abolition or modification of the restrictions.

FA XI-2. Adopted September 25, 1946

M-6. The Fund deems that it would be prejudicial to the interests of members and contrary to the purposes of the Fund for a member to impose restrictions on exchange transactions with those non-members having entered into special exchange agreements under the General Agreement on Tariffs and Trade, or with persons in their territories, which the member would not in similar circumstances be authorized to impose on exchange transactions with other members or persons in their territories. Therefore, pursuant to Article XI, Section 2, members should not institute restrictions on exchange transactions with such non-members, or persons in their territories, unless the restrictions (a) if instituted on transactions with other members, or persons in their territories, would be authorized under the Fund Agreement, or (b) have been approved in advance by the Fund. Requests for prior approval shall be submitted in writing with a statement of reasons.

FA XI-2. Adopted June 7, 1950

N—Staff Regulations

Personnel

N-1. The employment, classification, promotion, and assignment of personnel in the Fund shall be made without discriminating against any person because of sex, race or creed.

Adopted September 25, 1946

N-2. Persons on the staff of the Fund shall be nationals of members of the Fund unless the Executive Board authorizes exceptions in particular cases.

Adopted September 25, 1946

N-3. In the discharge of their functions, the persons on the staff shall owe their duty entirely to the Fund and to no other authority.

Adopted September 25, 1946

N-4. All persons on the staff must avoid any action, and in particular any kind of pronouncement, which may reflect unfavorably upon their position as employees of an international organization, either in their own country or elsewhere. They should always bear in mind the reserve and tact incumbent upon them by reason of their international functions, and they are required to exercise the utmost discretion in regard to matters of official business. At no time should they in any way use to private advantage information known to them by reason of their official position.

Adopted September 25, 1946

N-5. Except in the course of his official duties or by express authorization of the Managing Director, no person on the staff may, during the term of his appointment of service, publish, cause to be published, or assist in the publication of any book, pamphlet, article, letter, or other document relative to the policies or activities of the Fund or to any national political questions; deliver any speech, lecture, or radio broadcast, or grant any press interview on such policies, activities, or questions; or communicate to any person any unpublished information known to him by reason of his official position. After termination of his period of service with the Fund, a person formerly on the staff may not, without the express authorization of the Managing Director, disclose any confidential information he has received during his service with the Fund by reason of his official position.

Adopted September 25, 1946

N-6. No person on the staff shall hold other public or private employment or engage in any occupation or profession which in the Fund’s opinion is incompatible with the proper performance of his official duties.

Adopted September 25, 1946

N-7. A person on the staff may retain re-employment rights or pension rights acquired in the service of a public or private organization.

Adopted September 25, 1946

N-8. Any person on the staff who accepts a public office of a political character shall immediately resign from the Fund.

Adopted September 25, 1946

N-9. No person on the staff may accept any honor, decoration, favor, gift, or bonus from any government, or from any other authority or person external to the Fund, for services rendered during the period of his appointment or service with the Fund.

Adopted September 25, 1946

N-10. Upon appointment, each person on the staff will subscribe in writing to the following affirmation:

  • I solemnly affirm:

  • That, to the best of my ability, I will carry out my responsibilities in a manner that will further the purposes of the International Monetary Fund;

  • That I will refrain from communicating confidential information to persons outside the Fund;

  • That I will not use to private advantage information known to me by reason of my official position; and

  • That I will accept no instruction in regard to the performance of my duties from any government or authority external to the Fund.

Adopted September 25, 1946

N-11. All persons appointed to permanent positions on the staff shall be classified by grades or positions according to the nature of their duties and responsibilities. Salary increases within each grade will be progressively available upon the successful completion of successive periods of work or upon the recommendation of supervisors.

Adopted September 25, 1946

N-12. The salary scale for permanent employees of the Fund shall, so far as practicable, conform to the salary scale of the United Nations.

Adopted September 25, 1946

N-13. The Managing Director shall inform the Executive Board at least two weeks in advance of any action to appoint or initiate the dismissal of any person at or above the rank of division chief within a department or office or receiving a salary equal to or more than that of a division chief within a department. All other appointments to the staff shall be made by the Managing Director or his designated representative.

Adopted September 25, 1946, amended July 1, 1959

N-14. The Managing Director is authorized to issue General Orders, with the approval of the Executive Board, concerning the general personnel policies which shall apply to the operating staff of the Fund.

Adopted September 25, 1946

Travel

  • N-15. (a) Official travel will be undertaken by staff members only with the approval of the Managing Director or officials designated by him. In the case of travel outside the continental United States, however, the specific approval of the Managing Director is required.

    • Adopted September 25, 1946, amended February 11, 1948

    • (b) The Managing Director will inform the Executive Board of all such travel at least once a month.

      Adopted February 11, 1948

    • (c) Staff participation in activities of national agencies and staff travel to a member’s territory require consultation in advance with the Executive Director appointed or elected by the member.

      Adopted February 11, 1948

    • (d) Staff participation in deliberations or activities of international agencies or conferences as well as staff travel to a member’s territory, undertaken in response to a formal invitation, require the advance approval of the Executive Board.

      Adopted February 11, 1948

The definition of “business day” does not affect in any way the arrangements which have been made for the receipt of messages at all times and for prompt action upon them as required by circumstances and the Fund Agreement, By-Laws and Rules and Regulations.

    Other Resources Citing This Publication